Stocks prices are where they should be and the economy is healthy, bond fund manager Bill Gross said Friday in a reversal from earlier comments.
“I wouldn’t buy them. I wouldn’t sell them. I think stocks are appropriately valued at this point,” Gross said on CNBC.
Three days ago, Gross, chief investment officer for Pacific Investment Management Co. in Newport Beach, called for a 5% to 10% correction in stocks due to the contagious effects of the badly beaten subprime mortgage and corporate bond markets.
On Thursday, the S & P; 500 was down more than 3% at one point in the day.
Gross often is credited with the ability to move markets with his words. He also has a reputation for quickly changing his mind in lieu of new data.
Gross, who earlier predicted possible rate cuts to ward against recession, said corporate earnings were stable and the economy is healthy.
“We’re not heading towards a recession. There’s nothing wrong so I’m not a buyer or seller at this point but I’m not a panic seller,” said Gross.
